The Last Step — Accepting Payment
The store is generally considered to represent the “last mile” of the retail supply chain. In recent years, retailers have focused on making this final, crucial step as easy and convenient for customers as possible. The emergence of leading-edge digital technologies has allowed retailers even further opportunity to turn paying for goods into a fast, seamless process.
Following are a few examples of how retailers are reinventing how products are checked out and payments are processed.
Panera’s New Payment
Platform Panera Bread has unveiled a series of integrated technologies to enhance its customer experience. Key elements of the new “Panera 2.0” initiative, now live in 14 of the chain’s locations and slated to be deployed in nearly all locations during the next 36 months, include an ordering option called Rapid Pick-Up that enables customers to place a remote online/mobile up to five days in advance, and pick up their food at a pre-determined time without waiting in line.
Eat-in customers can place an online/ mobile order from anywhere within the restaurant and have the meal delivered directly to their table. The fast-casual chain is also rolling out “fast lane” kiosks, equipped with iPads, with a goal of reducing wait times.
Customers can save customizations, past orders and favorites at kiosks and through online or mobile app ordering, and link them to their MyPanera loyalty or credit card. Panera’s new digital ordering processes are enabled by an online ordering Web function on its website and a mobile app that will allow customers to store their purchase history and credit card information for future use.
Tesco Speeds Up Scanning
British grocery giant Tesco is seeking to improve the customer checkout experience by piloting a new, high-speed retail checkout solution from NCR Corp. at its Tesco Extra 24-hour store in Lincoln, U.K. The solution uses imaging technology from Datalogic that automatically finds the bar code on any side of the product without the need to orient the item on the conveyor belt. It is capable of scanning up to 60 items per minute.
The Tesco Extra store has deployed four units. Each unit allows three shoppers to pack and pay at the same time. The solution allows customers to decide how they wish to use it and proceed at their own pace.
Customers can complete their shopping transaction using cash or payment cards, as well as scan their Tesco Clubcard or utilize coupons.
Tim Hortons’ Offers Mobile Payments
Tim Hortons has expanded its TimmyMe iOS app to include support for Passbook. Customers can add their prepaid Tim card to Passbook, which they can then scan to pay in-store or at the drive-through in participating locations. The TimmyMe app also offers a store finder and nutritional data.
Domino’s Pizza Accepts Google Wallet Payments
Domino’s Pizza is integrating Google Wallet with its Android ordering app. Domino’s customers who have an Android device can now pay for their online orders using Google’s digital wallet.
Domino’s customers can place an online order using the Android ordering app and pay by selecting the “Buy with Google” button at checkout..
Manhattan Associates Momentum 2014
“We will have real-time temperature monitoring by the end of the year. Imagine what that means.”
— Tony Thompson, president and COO, Papa John’s International Inc.
“It’s hard to talk to anyone at Amazon. Everything has to be automated through their site. But dispute resolutions are almost always in favor of the customer.”
— Sucharita Mulpuru, VP/principal analyst, Forrester Research
“As a retailer, I’m not trying to make money on freight, but to lose as little money on freight as possible.”
— Reed J. Stepleman, senior director, professional services, fulfillment/e-commerce, Manhattan Associates
“Omnichannel is retail. Retailers try to put it in a bucket like it’s something to work toward.”
— Christina Bieniek, principal, Deloitte Consulting
SAP SAPPHIRE 2014
“Social activation is a move from measuring sentiment to changing perceptions. It’s not social listening. It’s creating consumer advocacy in their own words.”
— Bill Briggs, director, Deloitte Consulting
“We did away with four imprecise business processes. We wanted to adapt our business processes to a granular level of detail for more precision.”
— Stew Wenerstrom, senior VP/CIO, Big Lots
“Disruptive innovation doesn’t mean dramatic, new or different. It’s the transformation of a complicated, expensive product into a product that is more affordable and usable to create new growth.”
— Clayton M. Christensen, professor, Harvard Business School
“If we simplify everything, we can accomplish anything.”
— Hasso Plattner, supervisory chairman of the board, SAP
Prevention is Not the Security Panacea
A pound of prevention (which in this case means the use of chip-based payment cards, encryption of data stored in the enterprise, and restriction of third-party network access) is not a complete cure when it comes to improved data security for retailers, according to panelists at the recent CIO Symposium at the MIT Sloan School of Management in Cambridge, Massachusetts.
One complicating issue is that the “cloud” is becoming a “fog” as the Internet of Things continues expanding the range of devices that are online with IP addresses, creating new security liabilities.
“IP addresses crop up in devices you don’t realize, and they’re not protected,” said Patrick Gilmore, CTO of data center provider Markley Group. “What if someone hacks your printer and reads every document your CIO ever printed, or posts them online?”
The odds of such occurrences are on the rise. Symantec data indicates there were 253 major data breaches in 2013, up 62% from 2012. Those breaches compromised 552 million user IDs. And increasingly, data breaches are committed by affiliated groups of global cybercriminals or even nation-states, noted Mark Morrison, senior VP and CISO of State Street Corporation.
“This is not your grandmother’s hacker,” Morrison said. “Nation-states are even including cyber-attacks in their war-planning efforts.”
Effective data-security strategies, panelists agreed, need to focus on detection and remediation as well as prevention. Regardless of how strong a firewall is, USB devices are easy to hide, and securing an operating system against downloading of data is extremely difficult and can permanently damage the OS.
“Data is ubiquitous and easy to transfer,” Gilmore said. “If your security plan is built on preventing data from ever getting on a USB, you’ve already lost.”